As Trump launched Tomahawk missiles into Syria to the neocon’s delight, gold and silver are continuing to creep up.
First Majestic Silver Corp. ($AG) is trending up past it’s 50 moving average after making a double bottom.
As you can see $AG is down over 50% from it’s 2016 Aug high.
The company also has been managing it’s business much better than it’s peers. Noted from the 3rd quarter of 2016 they exceed at keeping their costs down:
All-in sustaining costs: down 27%
As if the dual fuels of rising production and prices were not enough, First Majestic also pushed its all-in sustaining costs down by 27% year over year to just $10.52 per silver ounce. Three factors contributed to this decline: the company’s recently renegotiated smelting and refining agreements, the continued weakness in the Mexican peso, and its record silver production. Those new arrangements alone resulted in a 34% decrease in smelting and refining costs, helping the company to more than offset a 10% increase in electric costs from the national power grid.
Recommendation: BUY (First Majestic Silver Corp. ($AG). Sell if you reach a 25% trailing stop or if the stock closes below it’s March low of $7.23.
This is a good time to play off of uncertainty, while the rest of the market appears expensive.by